Question 1

Do I lose ownership of my home with a reverse mortgage?

Accepted Answer

No. You keep the title. The lender places a lien on the property, repaid when you sell, move out, or pass away.

Question 2

Can my heirs keep the home after I pass?

Accepted Answer

Yes. Heirs can repay the loan balance and keep the home. They typically have 12 months to refinance or sell.

Question 3

What if my Del Mar home is worth more than the HECM limit?

Accepted Answer

A jumbo reverse mortgage can access equity above FHA's limit. These are private products with different terms.

Question 4

Is reverse mortgage income taxable?

Accepted Answer

Reverse mortgage proceeds are loan advances, not income. They are generally not subject to federal income tax.

Question 5

What disqualifies a borrower from a reverse mortgage?

Accepted Answer

Being under 62, not occupying the home as a primary residence, or failing HUD's financial assessment can disqualify you.

Question 6

How do I receive my reverse mortgage funds?

Accepted Answer

You can choose a lump sum, monthly payments, a line of credit, or a combination. Each option has different rate structures.

Reverse Mortgages in Del Mar: Turn Equity Into Income